Posted 3rd June 2024

Silver Price News: Silver Gives Up Gains to End Flat Week-On-Week

Silver prices fell back below $30.50 an ounce on Friday, taking a lead from lower gold prices, and ending the week almost unchanged from a week ago.

Prices had reached a high of over $32.30 an ounce during the middle of the week, but Thursday and Friday saw prices fall back below $30.50.

KAG/USD 1-hourly Kinesis Exchange

Both gold and silver prices came under pressure late Friday after US President Joe Biden unveiled an Israeli proposal to end the war with Hamas in Gaza. Recent hostilities have injected a risk premium into precious metals prices, and any prospect of a permanent ceasefire represents a bearish factor for prices in that context.

Silver’s price action through the week means the price will be closely watched to determine if a ‘double top’ has emerged. This would be confirmed if prices fall below $30.00 an ounce. Such an outcome would be taken as bearish from a technical perspective, as it implies a loss of bullish momentum in the second half of May.

Looking ahead, Chinese and US manufacturing figures are set for release on Monday, while Tuesday will see US JOLTs job openings and factory orders for April, for the latest take on the US economy.

Precious metals prices came under pressure Friday amid uncertainty over when the US Fed will start to cut interest rates. A higher-for-longer scenario represents a headwind for precious metals as non-yield-bearing assets.

Frank’s experience covering the commodities markets spans 22 years, with a particular specialism in metals, carbon and energy markets. He has worked as a senior editor for S&P Global Commodity Insights (formerly Platts) and before this, at ICIS-LOR, a part of Reed Business Information (Reed Elsevier), where he covered the petrochemicals markets from 2003 to 2005.

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